During the grantor's lifetime, a trust may be terminated with whose consent?

• A. The consent of all interested persons and the grantor
• B. The consent of a majority of beneficiaries
• C. The consent of the trustee alone
• D. Court order.

Answer: (A)

When a trust is terminated during the grantor’s lifetime, everyone with an interest in the trust must agree, and the grantor who created the trust must also consent. This unanimous consent protects each beneficiary’s rights and ensures the termination aligns with the grantor’s intentions. The trustee alone doesn’t have an ownership stake to authorize termination, and a simple majority isn’t sufficient because dissenting beneficiaries would lose their expected interests. If unanimous agreement isn’t possible, a court can order termination in some circumstances, but the required consent starts with all interested persons and the grantor.